The French property-buying process is actually very straightforward and well-regulated. Every year many thousands of foreign buyers purchase in France without problems or complications. As with any property purchase there can be problems, but most of them are encountered because buyers have not understood properly what they need to do in advance and how the process works, especially if they don’t speak French. This guide is here to give you independent advice.
The most important issue to bear in mind is that the sale becomes binding much earlier in the process than in the UK. Therefore if you allow enough time during your viewing trip you can effectively secure a property you have seen on your trip and return to your home country knowing that no-one else can buy it - gazumping is not generally a problem.
Capital Required It is difficult to put an exact figure on this, as prices vary from place to place and site to site, for obvious reasons.
To buy and upgrade a campsite which will produce a “living”/income requires a minimum capital of 350,000€ (about £300,000).
In addition a comfortable house on site will add approximately 150,000€ (about £110,000) to the budget.
We therefore recommend that a potential purchaser has at least 350,000€ - 500,000€ (about £300-410,000) capital and is prepared to borrow to buy an established business.
Obtaining finance for the purchase of a campsite depends on two things:
a) The declared turnover of the business, and length of time trading.
b) The previous business experience of the buyer.
Each site is different and must be studied individually, but the main problem is always the turnover. As with most cash businesses, the declared figures are rarely true. Although the banks know this they will only lend against a declared, positive track-record.
If the buyer is a professional in tourism, and/or has a background in business, marketing, speaks the language, etc., it is often possible to negotiate better terms for finance. Unless a site has exceptional possibilities, we advise against a loan in excess of 50% of the purchase price – the purchase price to include legal fees and immediate/essential investments.
We believe that leisure is one of the safest investments for people looking for a change of lifestyle and an income; however, knowledge of French and some management experience is essential. The prime factor in buying any business is finance and our role is to ensure that our clients have sufficient resources to purchase, improve and live on the business they buy.
For a family to maintain a reasonable living standard from a campsite or small hotel, we advise a minimum cash investment of £300,000.
In addition to this amount, borrowing may be needed; we recommend buying an established business, with a known turnover to minimize the future risks. It is much easier to improve than to create.
Bear in mind too, the amount of work that you consider will need to be done to modernise or upgrade the campsite, as many that are on the market have not had any substantial changes made for years, and are being sold as they are failing to compete with newer, more luxurious campsites.
A planned trip to visit a selection of properties is the only way to decide if such a venture is viable or suitable; our office will help to plan your trip once we have confirmed dates.
We are happy to discuss your project at any time by telephone; we suggest that you keep in touch with our website, which is updated regularly and when ready let us have your dates and we will organize the visits to selected properties.
The Buying ProcessThe Compromis de vente (first contract) The compromis is usually the first document you will sign and sets out the main terms of the agreement between the buyer and the seller. Normally the buyer will pay a 10% deposit on signing the agreement, which is held by the notaire. The agreement has to be signed by both parties and is a legally binding agreement – the only “get out” is if one of the obligations in the conditional clauses is not met.
The Compromis will include a date when it is expected to sign the Acte Authentique (the main contract – see below). Note that this is not legally binding and is really used as a target date which both parties aim for.
For the notaire to draw up the agreement you will need to provide your passport, marriage papers or divorce papers. If you're borrowing money you will also need paperwork with details of the loan.
The Notaire Once you find a property and agree a price, the actual contract process will be handled by a notaire as they are the only persons permitted by law to perform conveyancing in France.
The notaire is required by law to act impartially, and acts for both buyer and seller and is usually chosen by the vendor. He or she has a duty to provide you with advice, but you may need to ask relevant questions, rather than expect answers to be provided unsolicited. You can have your own notaire as well as the one appointed by the vendor, in which case they have to share the same initial fee between them so it doesn’t cost you any more, but it could extend the time it takes to complete the purchase.Additionally, if you wish, you can take independent legal advice in France or in the UK to help you with the purchase (e.g. from a non French solicitor) but you will be liable for their fees as well as the notaire’s fees
There are two key documents you will need to sign to buy a property in France. The Compromise de Vente and the Acte Authentique. See below.
The notaire charges a fee - up to 10 per cent of the 'net' property price.
The Contract The preliminary contract is called the compromis de vente. After you have signed the compromis, the notaire will begin the searches. You can include a Clause Suspensif (suspensive condition) in the contract enabling you to withdraw if the condition is not met successfully. For example, the purchase may be dependent on your being granted a mortgage on the property. If the Clause Suspensif is not met and the reason is proveable, your are entitled to the return of your deposit, but in borderline cases or if the vendor objects, you may have to bring a court action to get your deposit back. You should be given a copy of the contract, showing both your signature and the vendor’s.
The contract usually states that completion will take place in 60 days, but in practice this is often extended to 90 days, due to delays with searches etc.
Surveys If you require a survey to be carried out on a property, and this is used as a Clause Suspensif, a French court will only grant a return of your deposit if the survey has been carried out by a French surveyor, and the report written in French.
The final signing – Acte Authentique (Acte de Vente) Acte de Vente (deed of sale) conveys the title to you. The deed must be prepared by a French notaire, whose fees and costs, totalling up to 10% are paid by the purchaser.
You need to plan ahead in order to transfer the balance of your payment to the notaire's account in plenty of time for the signing date. The campsite will not become yours until all the funds required (including mortgage funds) for the campsite purchase and all associated fees have been sent to the notaires bank account.
After the Acte de Vente has been signed, it is sent for registration and payment of the transfer duties, and returned to the notaire, who retains it. You will receive a certified copy, normally after about three months. You should keep this document in a safe place as it is the title deed to your property.
Once you have signed the contract, retire to the nearest bar and enjoy a glass of champagne!
To resume in bullet points • Set up projects are not advised – the timescale is lengthy (maybe 3 to 5 years before any income arises), compliance with regulations can be infuriating and is certainly costly.
• Loans are not easy to obtain if not impossible for any campsite under 1,000,000.00 Euros.
• The cash investment must be readily available – it is no good simply having a house on the market.
• Be aware that the agency and banks will only look at declared figures in certified accounts.
• Banks will require a comprehensive presentation – obtain the assistance of an expert "comptable" (accountant) to prepare forecasts in standard French format. It usually makes sense to use the existing accountant. But don't worry too much, our very experienced and specialised team will supply you with the relevant professional support and advices at every stage of each transaction.
• Generally initial information will be sketchy – do not expect UK-type details. In particular accounts are rarely available until a visit is made.
• On going investment is required to maintain standards and to develop the business.
• Ensure there is available at least a 1 year contingency fund.
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Disclaimer:
This guide is provided for general information purposes only and is not intended to be a substitute for professional advice regarding any aspect of purchasing a French property. If in doubt you should consult your estate agent, legal or tax adviser. Espace Océan cannot be held responsible for the consequences of decisions or actions you may choose to take in connections with viewings trips or a property purchase.
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Now, why France ?
As a country, France is compelling. This multi-faceted holiday destination has an irresistible, year-round appeal boasting a landscape as diverse as it is grand in scale. From the lush green countryside and rich medieval heritage of Brittany and Normandy, to the sunlit vineyards of Bordeaux and the majestic snow capped of the Pyrenees, without forgetting the endless wonderful sandy beaches of the Atlantic coast - these are just some of the contrasts you can experience and potential campsite customers are looking for and coming to France to experience. In addition, it has never been easier than it currently is with the Ferries, trains and planes coming from all over the world; bringing unlimited tourists to France and potential customers for campsites.
As you can imagine, with a vast coastline that stretches for well over 2,000 Km, France offers an amazing variety of fine sandy beaches, stylish resorts, quaint traditional fishing villages, and delicious freshly caught seafood. In fact just about every opportunity you can ever dream of for fun and relaxation beside the sea is possible here.
Although boasting a wealth of fine cities, France is still very much a rural country. In fact over 75% of its land is either farmed or forested, making it a wonderful holiday destination for those looking to enjoy the peace and slower pace of country life. With considerably more than 100,000 villages of widely differing descriptions scattered throughout the lenght and breadth of France - from the thatched half-timbered hamlets of Normandy, to the fortified bastide towns of south-west - your options for relaxation and discovery are almost unlimited.
Big town or small village, there is one thing that virtually every community in France has in common - their local food market. Colourful characters, will consyantly catch your eye to tempt you with mouth-watering local specialities. If you can grow it, catch it, bake it, cure or bottle it, there is a good chance that someone will have it on display. From ham to honey, baguettes to beef, cheese to charcuterie, and poultry to paté, this is where you're sure to find an amazing array of all the region's finest and freshest produce at bargain prices. Traditional country cuisine is something else not to be missed, and every French region has its own range of local speciality dishes. In Normandy, much of these are based on rich cream from the dairy herds or apples grown in the ubiquitous orchards. This is also the home of Calvados and camembert cheese. In Brittany, you'll find a mouth-watering variety of crêpes and seafood, which you may like to wash down with a glass or two of locally brewed cider. Burgundy can lay claim to authentic Boeuf Bourguignon and Coq au Vin, while in the deep south of Aquitaine and the Midi Pyrénées the finest truffles + various succulent mushrooms, foie gras, confit de canard and traditional Cassoulet can be enjoyed with a glass or two again of very fine wine.
It's true that simply relaxing under a warm sun in idyllic surroundings is a wonderful way to recharge the batteries, but for many people a holiday is not a genuine break without getting out and about being active. This could mean trying out something completely new such as accrobranches, or simply enjoying a long-standing interest like a round of golf in a new and attractive setting. Either way, France delivers all the facilities you need to indulge yourself on a grand scale - from the seriously strenuous to the sedate.
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